1999-2000 Annual Report, Inland Revenue Department
(Text Only)


Revenue

Whilst the economy showed signs of recovery towards the end of the year under review, revenue collections were nonetheless adversely affected by the previous year's downturn. Coupled with the effect of 1998-99 Budget concessions, there was a decrease in collections of $8.8 billion in Earnings and Profits Tax (Figure 1, Schedules 1 and 2). However, as a result of the active stock market in early 2000, Stamp Duty collections increased by $1.9 billion. Overall, revenue collected by the Department during 1999-2000 totalled $93.7 billion (about 60% of the Government General Revenue, see Figure 2). This represents a decrease of $7.2 billion, or 7.1%, from that collected in the previous year. The major part of revenue collected came from Profits Tax and Salaries Tax, which together contributed some 67% (Figure 3).

The cost of collection of revenue increased from 1.21% to 1.37% (Figure 4). This was largely attributable to the fixed overheads which could not readily reduce as the overall revenue declined. Nevertheless, the cost of collection remains low by international standards.

Figure 1 Revenue collected by tax type
Type of tax 1996-97 (Dollars million) 1997-98 (Dollars million) 1998-99 (Dollars million) 1999-2000 (Dollars million)
Profits Tax - Corporations 44,945.2 49,447.9 37,686.3 32,333.2
Profits Tax - Unincorporated Businesses 5,117.8 5,899.1 7,565.6 5,365.3
Salaries Tax 28,708.6 30,158.8 25,062.7 24,831.5
Interest Tax 0.1 0.0 0.0 0.1
Property Tax 1,577.0 1,585.3 1,333.6 1,167.9
Personal Assessment 3,617.0 4,432.7 4,098.3 3,216.2
Total Earnings and Profits Tax 83,965.7 91,523.8 75,746.5 66,914.2
Estate Duty 1,510.3 1,588.1 1,236.7 1,271.6
Stamp Duty 20,460.6 29,096.9 10,188.7 12,115.9
Betting Duty 12,190.7 13,453.3 12,228.7 11,937.8
Business Registration Fees 1,319.9 1,341.1 1,275.7 1,276.2
Hotel Accommodation Tax 580.1 511.3 219.0 182.4
Total revenue collected 120,027.3 137,514.5 100,895.3 93,698.1
Percentage change over previous year 16.8% 14.6% -26.6% -7.1%

Figure 2 Government General Revenue
Revenue 1996-97
(Dollars billion)
1997-98
(Dollars billion)
1998-99
(Dollars billion)
1999-2000
(Dollars billion)
Inland Revenue Department collections 120 138 101 94
Other General Revenue 54 91 78 68
Total Government General Revenue 174 229 179 162
Percentage of Inland Revenue Department collections 69.0% 60.1% 56.3% 57.8%

Figure 3 Composition of the revenue collection
Type of tax 1998-99 1999-2000 Percentage change over previous year
Dollars million Percentage Dollars million Percentage
Profits Tax 45,251.9 44.9% 37,698.5 40.2% - 16.7%
Salaries Tax 25,062.7 24.8% 24,831.5 26.5% - 0.9%
Stamp Duty 10,188.7 10.1% 12,115.9 12.9% + 18.9%
Betting Duty 12,228.7 12.1% 11,937.8 12.8% - 2.4%
Others 8,163.3 8.1% 7,114.4 7.6% - 12.8%
Total revenue collected 100,895.3 100% 93,698.1 100% - 7.1%

Figure 4 Cost of collection
Cost of collection 1996-97 1997-98 1998-99 1999-2000
Percentage 0.86% 0.81% 1.21% 1.37%

 

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(Last updated/reviewed : August 30, 2001))